x402 protocol

Autonomous Payments for AI Agents and Users

AutoIncentive leverages the x402 protocol to enable seamless, gasless cryptocurrency payments for both human users and AI agents. This open standard from the Coinbase ecosystem powers our payment infrastructure, making it easy for agents to pay for services and for users to receive rewards.

What is x402?

x402 is an open standard for safer, more composable authorization and transaction flows. It enables:

• Gasless Transactions - Users don't need to pay gas fees

• Autonomous Payments - AI agents can pay for services automatically

• Micropayments - Efficient small-value transactions

• Signature-Based Authorization - Secure EIP-712 signed payment requests

• Multi-Chain Support - Works across multiple blockchain networks

How AutoIncentive Uses x402

AutoIncentive integrates x402 at the core of our payment infrastructure, enabling both our communication system and AI agent platform to process payments seamlessly.

Payment Flow Architecture

User/Agent Request
    ↓
CAgent (AutoIncentive Agent)
    ↓
x402 Payment Processing
    ↓
CFacilitator (Payment Validation)
    ↓
CBackbone (Service Execution)
    ↓
Service Delivered

Benefits for Clients

1

No Gas Fees for Users

Users never pay gas fees when receiving rewards or making payments through AutoIncentive. All transaction costs are handled by the platform using x402's gasless transaction model.

Example:

• User completes an engagement action (like, retweet, comment)

• AI agent verifies the action

• Reward is sent via x402 — user receives full amount, no gas deducted

• Transaction is fast and cost-effective

2

Instant Payments

x402 enables near-instant payment processing without waiting for blockchain confirmations. Users receive rewards immediately after verification.

Benefits:

• ✅ Rewards appear in wallet within seconds

• ✅ No waiting for block confirmations

• ✅ Better user experience

• ✅ Real-time payment status

3

Multi-Chain Flexibility

x402 supports multiple blockchain networks, allowing AutoIncentive to operate across different chains while maintaining a consistent payment experience.

Supported Networks:

• Solana (Primary)

• Base (via Coinbase Facilitator)

• Ethereum and EVM-compatible chains

• Additional networks via third-party facilitators

4

Secure and Transparent

All payments use EIP-712 signatures, providing cryptographic proof of authorization. Every transaction is:

• Verifiable - Signed with user/agent wallet

• Transparent - Recorded on-chain

• Non-repudiable - Cannot be denied after signing

• Secure - Uses industry-standard cryptography

5

Programmable Payments

x402 enables programmable payment flows that integrate seamlessly with our AI agents:

• Conditional Payments - Pay only when conditions are met

• Automated Distribution - Agents can distribute rewards automatically

• Batch Processing - Efficient handling of multiple payments

• Payment Scheduling - Schedule payments for future execution

Agent Integration

AutoIncentive's AI agents use x402 to autonomously pay for services and distribute rewards without human intervention.

How Agents Use x402

Service Payment Flow

When an AI agent needs to use a service (SMS, calls, messaging):

Agent Request → CAgent Processes → x402 Payment → CFacilitator → Service Executed

Example: Sending an SMS

1

Agent determines it needs to send an SMS

2

CAgent collects parameters (recipient, message, service type)

3

CAgent creates x402 payment request

4

Payment is authorized via EIP-712 signature

5

CFacilitator validates payment and forwards to CBackbone

6

SMS is sent, confirmation returned to agent

Reward Distribution

AI agents autonomously distribute rewards to users:

Action Verified → Agent Calculates Reward → x402 Payment → User Receives Tokens

Example: X Engagement Agent

1

User likes/retweets a tweet

2

Agent verifies engagement through X API

3

Agent calculates reward amount

4

Agent creates x402 payment for user's wallet

5

Payment is processed gaslessly

6

User receives tokens instantly

Autonomous Call Connections

Agents can autonomously connect phone numbers using x402:

Agent Decision → x402 Payment → CFacilitator → CBackbone → Call Connected

Example: Service Routing

1

User requests professional assistance via chat

2

Agent identifies appropriate service provider

3

Agent collects user's phone number

4

Agent pays via x402 for call connection service

5

Both parties are called and connected anonymously

6

Service is delivered without manual intervention

Agent Payment Capabilities

1

Real-Time Payment Processing

• Agents can make payments instantly when conditions are met

• No manual approval required

• Automated verification and execution

2

Multi-Service Payments

• Agents can pay for multiple services in sequence

• Batch payments for efficiency

• Conditional payment execution

3

Payment Scheduling

• Agents can schedule payments for future execution

• Recurring payment support

• Time-based payment triggers

Technical Implementation

x402 Integration Points

CAgent (AutoIncentive Agent)

• Role: Payment initiator and processor

• Function: Creates x402 payment requests

• Capabilities:

  • Generate EIP-712 signatures

  • Calculate payment amounts

  • Submit payment requests

  • Handle payment confirmations

CFacilitator (Payment Orchestrator)

• Role: Payment validation and routing

• Function: Validates x402 payments and routes to services

• Capabilities:

  • Verify payment signatures

  • Validate payment amounts

  • Route to appropriate services

  • Return execution confirmations

CBackbone (Service Platform)

• Role: Service execution

• Function: Executes services after payment validation

• Capabilities:

  • Receive validated payment requests

  • Execute services (SMS, calls, messaging)

  • Return service execution results

Payment Request Structure

{
  // Payment details
  amount: string,           // Payment amount
  currency: string,          // Token/currency type
  recipient: string,        // Recipient address
  
  // x402 specific
  signature: string,        // EIP-712 signature
  message: object,          // Signed message structure
  facilitator: string,      // Facilitator address
  
  // Service details
  service: string,          // Service type (sms, call, etc.)
  parameters: object        // Service-specific parameters
}

Security Features

EIP-712 Signatures

• All payments use typed structured data signing

• Prevents signature replay attacks

• Domain separation for security

• Human-readable transaction data

Payment Validation

• Multi-layer verification

• Signature validation

• Amount verification

• Recipient confirmation

• Service parameter validation

Fraud Prevention

• Rate limiting on payments

• Amount limits per transaction

• Wallet whitelisting (optional)

• Transaction monitoring

Use Cases

For Users

1

Earning Rewards

• Complete engagement actions

• Receive instant x402 payments

• No gas fees deducted

• Transparent reward tracking

2

Service Payments

• Pay for communication services

• Gasless transaction experience

• Fast payment processing

• Multi-chain support

3

Agent Interactions

• Interact with AI agents

• Receive payments automatically

• No manual claim process

• Instant reward delivery

For AI Agents

1

Service Consumption

• Pay for SMS, calls, messaging

• Autonomous payment processing

• No manual intervention needed

• Real-time service access

2

Reward Distribution

• Distribute rewards to users

• Automated payment execution

• Conditional payment logic

• Batch payment processing

3

Service Routing

• Connect users to services

• Pay for connection services

• Handle payment automatically

• Track service delivery

Advantages Over Traditional Payments

Traditional Payment Issues

• ❌ High gas fees for small transactions

• ❌ Slow confirmation times

• ❌ Complex wallet management

• ❌ Manual approval required

• ❌ Limited automation

x402 Benefits

• ✅ Gasless transactions

• ✅ Instant processing

• ✅ Simple integration

• ✅ Autonomous execution

• ✅ Full automation support

Supported Facilitators

AutoIncentive works with multiple x402 facilitators to ensure reliable payment processing:

• Coinbase Hosted Facilitator - Base network support

• PayAI Facilitator - AI agent optimized

• thirdweb Facilitator - Multi-chain support

• Custom Facilitators - For specific use cases

Getting Started

For Users

1

Connect Your Wallet

• Connect any Solana or EVM-compatible wallet

• No special setup required

• x402 payments work automatically

2

Start Earning

• Complete engagement actions

• Receive x402 payments instantly

• No gas fees, full rewards

For Developers

1

Integrate x402 SDK

Install

npm install @coinbase/x402

2

Configure Facilitator

• Choose a facilitator

• Set up payment endpoints

• Configure signature domain

3

Create Payment Requests

• Generate EIP-712 signatures

• Submit payment requests

• Handle confirmations

For AI Agents

1

Configure Agent Wallet

• Fund agent wallet

• Set payment limits

• Configure service parameters

2

Enable x402 Payments

• Integrate x402 SDK

• Configure payment flows

• Set up service routing

3

Deploy and Monitor

• Deploy agent

• Monitor payment activity

• Track service usage

Resources

Official x402 Resources

• x402 Official Website

• x402 Developer Docs

• x402 GitHub Repository

• x402 Whitepaper

AutoIncentive Integration

• Communication System Documentation

• AI Agents Documentation

• Platform Features

Community Resources

• Awesome x402 - Curated x402 resources

• x402 Discord - Community support

• x402 Reddit - Discussions and updates

Security & Best Practices

Security Recommendations

• ✅ Always verify payment signatures

• ✅ Validate payment amounts

• ✅ Use rate limiting

• ✅ Monitor for suspicious activity

• ✅ Keep facilitator keys secure

Best Practices

• Use official x402 SDKs

• Implement proper error handling

• Log all payment transactions

• Test in development environment

• Monitor payment success rates

FAQ

How does x402 eliminate gas fees?

x402 uses a facilitator model where facilitators pay gas fees on behalf of users. Users sign payment requests, and facilitators execute transactions, covering gas costs.

Can agents make payments autonomously?

Yes! AI agents can create and sign x402 payment requests autonomously, enabling fully automated payment flows without human intervention.

What networks does AutoIncentive support?

AutoIncentive primarily uses Solana, but x402 enables support for Base, Ethereum, and other EVM-compatible chains through various facilitators.

How secure are x402 payments?

x402 uses EIP-712 signatures, providing cryptographic proof of authorization. All payments are verifiable on-chain and cannot be repudiated.

Can I use my own facilitator?

Yes, AutoIncentive supports custom facilitators. Contact us for integration details.

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Built on x402 | Powered by AutoIncentive | Autonomous Payments for Everyone